Professional Documents
Culture Documents
Learning Objectives
1. Explain companywide strategic planning
and its four steps
2. Discuss how to design business portfolios
and develop growth strategies
3. Explain marketings role in strategic
planning and how marketing works with
its partners to create and deliver
customer value
4. Describe the elements of a customerdriven marketing strategy and mix, and
the forces that influence it
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Introduction
Introduction
Marketing strategy and marketing mix
Customer-driven Marketing strategy
Developing an Integrated Marketing Mix
Learning Objective 1
Explain companywide strategic planning
and its four steps
Companywide Strategic
Planning:
Defining Marketings Role
Strategic Planning
Current capabilities
GOAL
4 Steps in Strategic
Planning
Organizations purpose.
As a foundation of any marketing plan.
A clear mission statement acts as an invisible hand
that guides people in the organization.
A market-oriented mission statement defines the
business in terms of satisfying basic customer needs.
Mission statement
following questions:
What is our
Realistic.
business?
Who is our
customer?
What do consumers
value?
What should our
business be?
Specific.
One that fits the
market environment.
Based on distinctive
competencies.
Motivating.
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Mission Statement:
"Establish Starbucks as the premier purveyor of the finest coffee
in the world while maintaining our uncompromising principles while
we grow."
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Example:
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Learning Objective 2
Discuss how to design business portfolios
and develop growth strategies
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portfolio analysis.
Portfolio analysis is where management
evaluates the products and businesses making
up the company.
The steps in portfolio analysis are:
1. To identify the strategic business units (SBU).
The SBU is a unit of the company that has a
separate mission and objectives and that can
be planned independently from other company
businesses.
2. To assess the attractiveness of its various SBUs
and decide how much support each deserves.
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growth.
Marketing has the main responsibility for
achieving profitable growth for the company
Growth strategies:
product / market
expansion grid
(Product/market
development)
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Downsizing strategies:
eliminate product /
SBUs that are not
profitable
Growth strategies:
Product/Market Expansion
Grid
The product/market expansion
Market penetration
Market development
Product development
Diversification
Growth strategies:
Product/Market Expansion
Grid
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Example:
Starbucks can penetrate the market by:
a) Add new stores in current market areas to
make it easier for customer to visit.
b) Improvement in advertising, prices,
service, menu selection or store design to
encourage customers to stop more often
and stay longer.
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How?:
Enter new demographics
or products
geographic area
Current
with same products.
New markets
New markets
New markets
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Ikea Malaysia
Ikea Sweden
Ikea China
Example:
Management of Starbucks can look or
identify the demographic markets
( seniors or ethnics) and geographic
markets (smaller cities) in developing
their market.
1996 11 coffeehouse outside North
America
Now 4000 coffeehouse
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How?
Adding
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Example:
Starbucks added Fruit Juice Frappuchino
beverages to its menu.
To grow in more non-coffee drinkers
Offer sandwiches to bolster its morning
business.
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(d) Diversification
(new product / new market)
Strategy:
Starting up or buying businesses outside of its
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Downsizing strategies
Companies must also develop strategies for
downsizing.
When a firm finds brands/businesses that
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Learning Objective 3
Explain marketings role in strategic planning
and how marketing works with its partners to
create and deliver customer value
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Step 4: Planning
Marketing and other
functional
strategies
Marketing
plays a key role in the companys
strategic planning.
Marketing provides a guiding philosophythe
marketing concept.
Marketing provides inputs to strategic planners.
Marketing designs strategies for reaching the units
objectives.
Customer value is the key ingredient in the
Example:
Wal-Mart goal is to create customer
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Market
Positioning
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Learning Objective 4
Describe the elements of a customer-driven
marketing strategy and mix, and the forces
that influence it
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Customer-Driven Marketing
Strategy
Marketing requires a deep understanding
of customers.
Companies must divide up the total
market, choose the best segments, and
design strategies for profitably serving
chosen segments.
This process involves:
Market segmentation
Market targeting
Market differentiation, and positioning.
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Differentiation is differentiating
the companys market offering so
that it gives consumers more value.
Market
Differentiati Positioning is arranging for a
on &
product to occupy a clear,
Positioning
distinctive, and desirable place
relative to competing products in the
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minds of target consumers.
Market segmentation
Example:
Segment one: customer who want the
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Target Marketing/Market
Targeting
Example:
Abercrombie & Fitch targets college
students, teens, and kids with same
upscale, casual clothes and accessories
in different outlets
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difference
Must identify the possible customer value
differences that provide competitive
advantages to build position.
Example:
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Developing an Integrated
Marketing Mix
The marketing mix is the set of
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Place
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SWOT ANALYSIS
SWOT Analysis is used to evaluate the
SWOT ANALYSIS
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Physical facilities
Quality product
Strong brand
financial resources
Image/reputation
technology
Weaknesses
ENVIRONMENT
INTERNAL
Strengths
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demographic
economic
technological
political / legal
competition
Threats
ENVIRONMENT
EXTERNAL
Opportunities
SWOT ANALYSIS
The company should analyze its market and
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Exercise.
The product strategy is how marketers communicate
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Exercise.
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CLASS ACTIVITY
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Group Activity
Develop a mission
statement for
YOU!
You can think of
yourself as a
product that you
are promoting to a
potential employer
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Chapter 2
The End
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